Method ofACCOUNTINGfor SECURITIES whereby transactions are recorded on the date the securities settle by the delivery or receipt of securities and the receipt or payment ofcash. Most individuals that are in business for themselves, such as SOLE PROPRIETORS, PARTNERS or independent contractor, are subject to self employment taxes. The taxes provide coverage for the self employed individual for social security and Medicare benefits similar to the taxes withheld by employers from wages it pays the employees. ABONDthat gives the bondholders a pledge of certaincompanyassets as a guarantee of repayment. Recurring financial activities reflected in theaccountingrecords in the normal course of business. A measurement of a company’sPROFITABILITYor overall earning power, that is, how efficiently a company uses its assets to produceINCOME.

Sales of products,merchandise, and services; and earnings fromINTEREST, DIVIDEND, rents. TheACCOUNTthat reflects the stockholders’ claim to the assets earned from operations and reinvested in corporate operations. Fund established toaccountfor assets whoseincomemust be used for purposes established by donors or grantors accounted for synonyms of such ASSETS. Periodin a business cycle when economic activity picks up and the gross national product grows, leading into the expansion phase of the cycle. A ratio for measuring the relative size of a company’s accounts receivable and the success of itsCREDITand collection policies during anaccountingperiod.

Debit Balance

State Boards for Public Accountancy and theAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS each have separateCPErequirements. Goods bought for personal or household use, as distinguished from capital goods or producer’s goods, which are used to produce other goods. Organizationengaged in business as aPROPRIETORSHIP,PARTNERSHIP,CORPORATION, or other form of enterprise.

PROFITon a securities or capitalINVESTMENT, usually expressed as an annual percentage rate. Accumulated undistributed earnings of acompanyretained for future needs or for future distribution to its owners. Reorganizationwithin an entity.Restructuringmay occur in the form of changing the components of CAPITAL, renegotiating the terms ofDEBTagreements, etc. Agreement whereby an institutionpurchasesSECURITIES under a stipulation that the seller will repurchase the securities within a certain timeperiodat a certain price. EXPENDITURES made in order to keep property in good condition but that do not appreciably prolong the life or increase thevalueof the property. Often used to describe taxes where the TAX rate paid decreases as theTAXABLE INCOMEincreases.

Interest Rate

It is also an important figure in the basis of many other individual planning issues as well as a key line item on the IRS form 1040 and required state forms. Confirm the auditor’s understanding of the design of controls identified for all five components of internal control over financial reporting, including those related to the prevention or detection of fraud. May cause thelossof tax deductions under Section 162 , the deduction that public companies take for compensation to chief executive officer and next four highest compensated officers is limited to $1 million each. However, discounted options do not qualify as performance based compensation and therefore the deduction that the company would get may be partially or completely lost. In addition discounted stock options do not qualify for Incentive Stock option treatment.

Document authorizing someone other than theshareholderto exercise the right to vote the stock owned by the shareholder. Used to measure the percentage of each sales dollar that results inNET INCOME. Presentation of financial information that gives effect to an assumed event (e.g.,MERGER). Aninterestin atransaction,contractor legal action to which one is not a party, arising out of a relationship to one of the parties. High/low range in which a stock has traded over a particularperiodof time.

Real Interest Rate

An entity that holds a fixed pool of mortgages and issues multiple classes ofinterests in itself to investors. A qualifiedREMICis generally taxed like apartnership, unless it takes contributions after its start up day or engages in a prohibitedtransaction. Piece oflandand all physical property related to it, including houses, fences, landscaping, and all rights to the air above and earth below the property. Method ofACCOUNTINGin which the values that arise from anacquisitionare transferred or „pushed down” to the accounts of an acquiredcompany. A temporaryACCOUNTused under thePERIODIC INVENTORY SYSTEMto record theTOTAL COSTof all MERCHANDISEpurchased for resale during anaccountingperiod. Written authorization to avendorto deliver specified goods or services at a stipulated price.

• Designing and manipulating a mathematical representation of an economic system or corporate financial application so that the effect of changes can be studied andforecast.
• It does not matter if the total 60 dayperiodbegins in onetax yearand ends in another.
• Cost incurred to acquire economically useful goods or services that are expected to be consumed in the revenue-earning process within theoperating cycle.
• A qualifiedREMICis generally taxed like apartnership, unless it takes contributions after its start up day or engages in a prohibitedtransaction.